This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, click the "Reprints" link at the bottom of any article.

November 21, 2012

Norquist Slams Simpson in Escalating War of Words Over Taxes

Former Republican senator doesn’t think much of ‘tax pledge' that Norquist has been pushing with much success onto Republican lawmakers and candidates

More On Tax Planning

from The Advisor's Professional Library

Annuities: Estate Tax
The value of certain types of annuities may be included in an estate’s value. Understanding the intricacies of these inclusions is a critically important aspect of estate planning.

Taxation of Real Estate
Real estate may be used to shelter income and may offer certain tax benefits. However, the type of real estate investment may result in different tax treatment. Learn how to use these investments to help your clients.

It’s “white robes” versus “rambling."

A bit of controversy has arisen from last week's Schwab Impact 2012 conference Chicago, with each side not-so-subtly referring to the other’s mental state.

Following a speech to attendees on Thursday, former Republican Sen. Alan Simpson joined commission co-chair Erskine Bowles for a live interview in the exhibit hall with CNBC. When asked about low-tax evangelist Grover Norquist and his “no tax” pledge taken by many Republicans in Congress, Simpson called the position untenable.

“[What] I've always said about Grover Norquist is he's wandering the earth in his white robes,” Simspon said.

According to CNBC, Simpson “chided his fellow Republican for sticking to his guns on keeping taxes low and questioned Norquist's ability to force Republicans to toe his line.”

"What can he do to you? He can't murder you; he can't burn your house. The only thing he can do to you is defeat you for re-election. And if that means more to you than your country ... you shouldn't even be in Congress."

Norquist didn’t take the insult lightly, responding a day later, "Alan Simpson ranting is not news."

He told the network that the latest tax plan would take taxes as a percentage of gross domestic product from 18.5% in full employment—the average over the past 30 years—to 21%, which equates to a $5 trillion tax increase over the next decade.

Norquist told "Closing Bell" growth, not tax hikes, is the best way to raise revenue for the federal government.

"If you grow at 4% a year instead of 2% a year for one decade, the government raises $5 trillion," Norquist asserted, according to the network.